To amend the Internal Revenue Code of 1986 to extend the
production and investment tax credits for wind facilities and to modify the
foreign tax credit rules applicable to major integrated oil companies which are
dual capacity taxpayers.

1.

Short title

This Act may be cited as the
Wind Powering American Jobs Act of
2012.

2.

Extension of
production and investment tax credits for wind facilities

(a)

Extension of
production credit

Paragraph
(1) of section 45(d) of the Internal Revenue Code of 1986 is amended by
striking January 1, 2013 and inserting January 1,
2014.

(b)

Extension of
investment credit

Clause (i) of section 48(a)(5)(C) of such Code
is amended by striking or 2012 and inserting 2012, or
2013.

(c)

Effective
date

The amendments made by this section shall apply to property
placed in service after December 31, 2012.

Section 901 of the
Internal Revenue Code of 1986 is amended by redesignating subsection (n) as
subsection (o) and by inserting after subsection (m) the following new
subsection:

(n)

Special rules
relating to major integrated oil companies which are dual capacity
taxpayers

(1)

General
rule

Notwithstanding any
other provision of this chapter, any amount paid or accrued by a dual capacity
taxpayer which is a major integrated oil company (as defined in section
167(h)(5)(B)) to a foreign country or possession of the United States for any
period shall not be considered a tax—

(A)

if, for such period, the foreign country or
possession does not impose a generally applicable income tax, or

(B)

to the extent such amount exceeds the
amount (determined in accordance with regulations) which—

(i)

is paid by such dual capacity taxpayer
pursuant to the generally applicable income tax imposed by the country or
possession, or

(ii)

would be paid if the generally applicable
income tax imposed by the country or possession were applicable to such dual
capacity taxpayer.

Nothing in this paragraph shall be
construed to imply the proper treatment of any such amount not in excess of the
amount determined under subparagraph (B).(2)

Dual capacity
taxpayer

For purposes of this
subsection, the term dual capacity taxpayer means, with respect to
any foreign country or possession of the United States, a person who—

(A)

is subject to a levy of such country or
possession, and

(B)

receives (or will receive) directly or
indirectly a specific economic benefit (as determined in accordance with
regulations) from such country or possession.

(3)

Generally
applicable income tax

For
purposes of this subsection—

(A)

In
general

The term
generally applicable income tax means an income tax (or a series
of income taxes) which is generally imposed under the laws of a foreign country
or possession on income derived from the conduct of a trade or business within
such country or possession.

(B)

Exceptions

Such term shall not include a tax unless it
has substantial application, by its terms and in practice, to—

(i)

persons who are not dual capacity
taxpayers, and

(ii)

persons who are citizens or residents of
the foreign country or
possession.

.

(b)

Effective
Date

(1)

In
general

The amendments made
by this section shall apply to taxes paid or accrued in taxable years ending
after the date of the enactment of this Act.

(2)

Contrary treaty
obligations upheld

The
amendments made by this section shall not apply to the extent contrary to any
treaty obligation of the United States.